Institutional real estate and infrastructure investors are expanding rapidly beyond their own borders, acquiring properties in countries that once would have been considered too risky. New international opportunities have led commercial businesses to expand operations abroad, some for the first time. This trend is likely to continue as population growth in emerging market countries spurs strong demand for residential and commercial real estate and key forms of economic and social infrastructure.

While investing in emerging markets can bring businesses higher profits, it may also bring greater perils. Real estate investment in developing markets is especially vulnerable — the unpredictable nature of contract negotiations and changing regulations in emerging markets has highlighted the importance of coverage against expropriation, nationalisation, and other political risks.